It’s impossible to be overly careful when it comes to securing your digital wallet. The recommended level of security might seem excessive at first glance, but there’s a very good reason behind this.
When it comes to cryptocurrency, all the responsibility is yours. An ownership proof is stored on the blockchain, and ownership is verified with a private key. In the event that someone gets their hands on your private key, they could effectively take ownership of your currency. If you lose it, there is usually no way to get into your wallet and your money is lost.
So Keep your Bitcoin wallet secure with these essential steps, and make sure your private key is inaccessible to anyone who might want to exploit it.
1. Ensure the security of your email
An email phishing scam is one of the most common methods of falling victim to a scam. In most cases, users are sent to a fake website where they type in a password. Emails and websites like these can be very convincing to even the most savvy internet users. That is why you should only open emails from reputable sources, and ensure that any website you are directed to has a security certificate.
2. Make sure your devices are clean
If you have digital currency, keeping your devices malware-free is also imperative.
If you know that a piece of software is a bit suspect, don’t install it on your devices, such as a torrent client or anything that allows for questionable practices. Occasionally, even legit software is bundled with additional software and plug-ins, so don’t accept bundled software during installation. If you have any doubt that a piece of software is secure, don’t install it on the same computer you use to trade crypto.
It is also advisable to install an antivirus program as well as a malware scanner.
3. Make use of two-factor authentication
Although passwords are a very standard security measure, they are actually problematic. The practice of creating hackable passwords, forgetting them, and using the same one for multiple sites and accounts is suboptimal.
Whenever possible, it’s wise to use two-factor authentication (2FA). By doing this, a fallback layer of security is created, which should hopefully prevent hackers from getting access to your password. It is becoming more and more common for companies to use PINs and set security questions, although these can still be vulnerable to security fatigue. The standard practice among reputable wallet service providers (WSPs) is to install an authenticator app which generates a time-limited code unique to you.
4. Be cautious when using public wifi
While public wifi is convenient in many ways, you should avoid connecting devices containing sensitive information. Your provider will have access to the data you send and receive over the network at best. The worst case scenario is that malicious software could be used to steal your information.
When using public wifi, encrypt your data with a VPN as it is the only way to keep your data safe. It goes without saying that you shouldn’t put your wallet on a wifi network you can’t trust.
5. Avoid storing tokens in exchanges
Exchanges are an obvious target for hackers, and attacks are frequent. If you want cold storage, then you should use a reputable wallet service provider. You shouldn’t trade your digital currency frequently, especially if you view it as an investment.
6. Make sure your private key is secure
With the creation of your wallet, you will receive a unique key to download. The private key is a unique 256-bit alphanumeric password that allows you to transfer your crypto.